Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


MARKET CLOSE: NZ shares drop, led by Warehouse

MARKET CLOSE: NZ shares drop, paced by Warehouse, Hallenstein, Kathmandu

By Suze Metherell

Jan. 23 (BusinessDesk) - New Zealand shares fell as the market joined a region-wide decline, and was paced by retailers after the Warehouse Group joining Hallenstein Glassons in issuing a profit warning.

The NZX 50 Index fell 39.263 points, or about 0.8 percent to 4911.076. Within the Index 35 stocks fell, seven rose and eight were unchanged. Turnover was $101.7 million.

Across the Asian markets there was a downturn after Chinese data showed manufacturing was shrinking. Australia’s S&P/ASX 200 Index was down 1.2 percent in afternoon trading, while Hong Kong’s Heng Seng Index slipped 1.4 percent and Japan’s Nikkei 225 Index was down about 0.4 percent.

“The negative data out of China flowed on particularly through Australia,” said James Smalley, a director at Hamilton Hindin Greene. “We just seem to be following those trends at the moment.”

Budget retailer Warehouse Group led decliners after it warned its first half profits could fall as much as 13 percent. New Zealand’s largest listed retailer slid 4.5 percent to $3.54, its lowest price this year.

Among other retail stocks to fall, outdoor equipment chain Kathmandu Holdings dropped 4.4 percent to $3.35 and Hallenstein Glasson, which was punished last week after it issued a profit warning, fell 2.9 percent to $3.35.

Smalley said the decline among retailers was on light trading volumes, and that “most people want to give the companies the benefit of the doubt.”

Listed property entities declined as the talk of an interest rate hike “sooner rather than later,” diminishing the appeal of property stocks that typically return a steady cash dividend, Smalley said.

Goodman Property Trust fell 1 percent to 97 cents. Kiwi Income Property Trust dropped 0.9 percent to $1.10. DNZ Property Fund fell 0.3 percent to $1.53, and Argosy Property was unchanged at 93 cents.

SkyCity Entertainment Group slipped 1.8 percent to $3.82. Auckland International Airport slid 1.2 percent to $3.62. New Zealand’s biggest listed company Fletcher Building fell 0.3 percent to $9.13. Telecom was down 0.2 percent to $2.39.

Smalley said some of the heat came out of the tech stocks as investors took the opportunity to take profits.

Xero, whose share price has gained 480 percent in the past 12 months, declined 1.4 percent to $42.59. Security software company Wynyard slipped 7.6 percent to $2.93. NZAX-listed GeoOp, which today announced it was on track to hit sales targets of its task management app, tumbled 11 percent to $2.45.

“It could be the old absolute of investors, buy the rumour, sell the fact,” Smalley said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news